Nifty seen lower; HDFC Bank watched

NEW DELHI: The 50-share Nifty index is expected to open lower on Tuesday tracking negative Asian markets while investors will closely watch HDFC Bank which is expected to declare quarterly numbers later today.

According to an ET Now estimates, HDFC Bank is expected to post robust set of numbers with 32% growth in net profits. Interest margins are expected to moderate by 15 bps sequentially while steady fee income growth, controlled costs are likely to drive profits.

The market had a lacklustre trading session on Monday.

"Indian markets continue face stiff resistance at 5630 levels and have a strong demand base close to 5500 levels", says Kunal Saraogi, CEO, Equityrush. "The 50-share Nifty Index is likely to trade between these levels before breaking either way decisively", adds Kunal.

There is a stronger probability of it breaking on the upside.

U.S. stocks dropped on Monday on governments' inability to solve debt crises in the United States and Europe.

Equityrush recommends a sell on Mahindra and Mahindra with a Stop Loss above Rs 720 and a target of RS 670 and a buy in Biocon with a stop loss below Rs 367 and a target of Rs 385.

Stocks to watch:

Indo Rama Synthetics after the textile firm reported a profit after tax (PAT) of Rs 51.44 crore for the quarter ended June 30, 2011.

Zee Entertainment Enterprises Ltd (ZEEL) after the Essel Group Company said on Monday that it will undertake a share buyback programme that will entail an outgo of up to Rs 700 crore.

Polaris Software Lab after the Chennai-based mid-tier banking financial services and insurance IT Product Company has picked up 51% stake in Bangladesh's largest nationalised commercial bank, Sonali Bank, for an undisclosed amount.

GVK Power & Infrastructure Ltd and Australia's Hancock Prospecting have extended the deadline yet again for exclusive talks on two Australian coal mines to the end of August on valuation concerns.

ING Vysya Bank after the private sector lender on Monday posted a forecast-beating 36% jump in net profit for the June quarter led by higher lending growth, fee income and better asset quality.

Mukta Arts Ltd after the company has forayed into the multiplex business under the brand 'Mukta A2 Cinemas' with the first one launched at Vadodra in Gujarat on Friday.